Natural Gas Pipeline Company Of America

Seventh Revised Volume No. 1

Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective

Original Sheet No. 378 Original Sheet No. 378 : Pending

GENERAL TERMS AND CONDITIONS

----------------------------

12.3 BALANCING CHARGES WITH OPERATIONAL FLOW ORDERS

(a) On any day when an Operational Flow Order (but not

a Critical Time) is in effect, if actual receipts, deliveries,

injections or withdrawals allocated to a Shipper at any point or

under any Agreement do not conform to the sum of such Shipper's

confirmed nominations and no-notice rights applicable to such point

and/or Agreement, Balancing Service Charges will be assessed on such

variances that are detrimental to Natural's system, based on the

conditions described in or giving rise to the Operational Flow

Order, except as provided in Section 12.6. Notwithstanding the

foregoing, Balancing Service Charges shall not be assessed for

variances at Receipt Points unless explicitly stated in the

Operational Flow Order. The Operational Flow Order shall also state

whether the charges are to be based on variances at individual

points, by zone or by other aggregation. Balancing Service Charges

during this period will be as follows, based on the variance between

actual receipts, deliveries, injections or withdrawals and the

applicable confirmed nominations and/or no-notice rights:

VARIANCE CHARGE

---------- ------------------------------------

0% to 3% No additional charges

3% to 10% Greater of $1.00/Dth or 50% of AMIP

10% to 20% Greater of $2.00/Dth or 1 times AMIP

20% to 50% Greater of $4.00/Dth or 2 times AMIP

Above 50% Greater of $8.00/Dth or 4 times AMIP

(b) Shipper shall in addition pay all applicable

charges specified in Sections 12.2(a)(1) and 12.2(b). Where

Balancing Service Charges apply under this Section 12.3, they shall

be in lieu of Balancing Service Charges under Section 12.2(a)(2),

but the charges identified in the prior sentence shall still apply.

12.4 CHARGES DURING CRITICAL TIMES

(a) On any day when a Critical Time is in effect, if

actual receipts, injections, withdrawals and/or actual deliveries

allocated to Shipper at any point or under any Agreement for

services provided by Natural under the Commission's Regulations at

18 C.F.R. Part 284 do not conform to the sum of confirmed nominated

volumes and no-notice rights applicable to such point or Agreement,